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Input cost, capacity utilization and substitution in the short run

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dc.affiliation.dptoUC3M. Departamento de Economíaes
dc.contributor.authorDelgado, Miguel A.
dc.contributor.authorJaumandreu, Jordi
dc.contributor.authorMartín Marcos, Ana
dc.date.accessioned2009-07-17T10:02:50Z
dc.date.available2009-07-17T10:02:50Z
dc.date.issued1999
dc.description.abstractThis article studies the behavior of input cost shares in an environment where labor is costly to adjust, materials can be adjusted at no cost and capital is fixed. A model relating cost shares with relative prices and adjustment costs is proposed, allowing joint estimation of the elasticity of substitution and the adjustment cost function, which is an unknown function of the capacity utilization. Based on a panel of more than 700 manufacturing firms, we find evidence of strong input share variations according to the degree of capacity utilization. The estimated shapes of adjustment costs curves of labor are in agreement with our theoretical model, and we obtain sensible elasticities of substitution estimates. Based on such estimates, we find evidence of a negative (positive) bias in downturns (recoveries) in conventional productivity growth measures.
dc.description.statusPublicado
dc.format.mimetypetext/plain
dc.format.mimetypeapplication/pdf
dc.identifier.bibliographicCitationSpanish Economic Review. 1999, vol.1, nº. 3, p. 239-262
dc.identifier.doi10.1007/s101080050011
dc.identifier.issn1435-5477
dc.identifier.urihttps://hdl.handle.net/10016/2444
dc.language.isoeng
dc.publisherSpringer
dc.relation.isversionofhttp://hdl.handle.net/10016/4676
dc.relation.publisherversionhttp://www.springerlink.com/content/p41p4fga20c8hvjm/?p=fc46aa03bc2a4bcc866afa55ab2d9c13Ï€=2
dc.relation.publisherversionhttp://dx.doi.org/10.1007/s101080050011
dc.rights.accessRightsopen access
dc.subject.ecienciaEconomía
dc.subject.jelD24
dc.subject.jelE32
dc.subject.otherCapacity utilization
dc.subject.otherinput shares
dc.subject.otherproductivity measurements
dc.titleInput cost, capacity utilization and substitution in the short run
dc.typeresearch article*
dc.type.reviewPeerReviewed
dspace.entity.typePublication
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